The Grafton Group Project

Only available on StudyMode
  • Download(s) : 139
  • Published : May 3, 2010
Open Document
Text Preview
Student Names: Stephen Bray B00037534
Johnny GeraghtyB00020240
Alan LennonB00020051
Emmet Toft B00015911

Module Name:Strategic Management 2
Lecturer:Mr Liam Bolger
Submission Date:29th April, 2010
Word Count:10,413

Table of Contents
Background of the company:2
History of the company:3
The Environment7
PESTEL analysis7
Ireland population by Age 20069
Key drivers for change10
The Industry11
Porters Five Forces analysis11
Substitute products/services12
Bargaining power of buyers12
Bargaining power of suppliers12
Opportunities and Threats14
Opportunities identified15
Threats identified16
Financial Information Analysis17
Analysis of Financial Reports18
Liquidity Ratios18
Profitability Ratios20
Net Profit Margin per Segment20
Earnings per share (EPS)21
Return on Investment:24
problems with accessing credit.25
Share Price26
Source http:investor/graftongroupplc.com27
Liquidity: Excellent27
Financial Strength:Excellent27
Profitability: Fair27
Growth: 027
Source www.corporateinformation.com27
Outlook for the Future28
Rationalisation measures:29
Plans for 2010:29
Opportunities 2010:29
Group Strengths30
Strategic Capability31
Critical Success factors for customers (a sample of but not limited to):33 Corporate Governance35
Grafton Group’s Compliance with the Combined Code36
The Board – who reports to whom?37
Directors’ Independence and Board Balance38
Performance of the Board39
Corporate Social Responsibility – CSR and Ethics39
Shareholder and Stakeholder Expectations and Influences41
Culture of Organisations and Grafton Group43
Strategic Direction and Corporate level strategy44
Corporate Parent44
The corporate parent as a Synergy manager45
Strategic Drift46
International Strategy48
Table Pre-Merger48
Table Post-Merger50
Traditional reasons for Merger failure51
Through a possible merger Grafton may:52
Strategic Directions53
Market Consolidation54
Market Diversity (Related)55
International strategy – Travis Perkins and Grafton merger?56 Bibliography59
Plagiarism Disclaimer:60

Background of the company:

Grafton Group plc is an independent, profit growth oriented company with operations primarily in the UK and also in Ireland. The Group has strong national and regional positions in the merchanting, DIY retailing and mortar markets. The Group aims to achieve above average returns for shareholders. Grafton’s strategy is to build on strong positions in businesses serving the UK and Irish construction sectors, to develop in related markets, and to grow in businesses with which it is familiar. In Great Britain, Grafton is the fourth largest merchanting business trading from 430 locations comprising 219 Builders Merchanting branches trading principally under the Buildbase and Jackson brands and 211 Plumbers Merchanting branches trading mainly under the Plumbase brand. EuroMix is the market leader in the UK dry mortar market where it trades from a network of nine manufacturing plants in England and Scotland. In Northern Ireland, MacNaughton Blair is one of the leading builder’s merchants in the province where it trades from 20 locations. In the Republic of Ireland, the Group is the largest builders and plumber’s merchanting business trading nationally from 62 branches under the Chadwicks and Heiton Buckley brands. The Group is the market leader in DIY retailing in the Republic of Ireland, trading nationally from 41 stores and is also engaged in the manufacture of mortar, plastics and windows in the Republic of Ireland. Today, in Ireland, Grafton is the largest builders and plumbers merchants and the clear market leader in DIY retailing. In the UK the Group’s merchanting...
tracking img